Rupee up on Asian peers; choppy local shares limit rise

Rupee up on Asian peers; choppy local shares limit rise

Mumbai: The rupee remained firm in afternoon trade on Monday comforted by gains in Asian peers, but volatile local shares tempered the rise.

The government decision last week to increase the limit for external commercial borrowings by companies to $30 billion from $20 billion may have also have lent sentimental support to the rupee, traders said.

At 2:05pm, the partially convertible rupee was at 45.0775/0800 per dollar against 45.16/17 at last close. The rupee has moved between 45.0500 and 45.1375 so far in the day.

Traders said movement in the euro could be crucial for rupee direction.

The euro dipped on Monday after its bounce lost steam ahead of chart resistance, with investors covering short positions in the dollar following a slide in the US currency late last week. It still held on to the bulk of the gains it made on Friday, when it climbed more than 1 percent against the greenback for its biggest one-day percentage rise in about a month.

The euro was at $1.4291 and the index of the dollar against six major currencies at 74.874 points.